California is the Worst State for Business 2013

Previous State: New York

No. 50California

Taxations & Regulations

Workforce Quality

Living Environment

Based on CEO Survey by

Key Metrics
State GDP 

  • % Growth ’10-’11: 2.0
  • % Growth ’10-’11 v. Nat’l Avg. (1.5%): 0.5


  • Unemployment Rate Dec. 2012 %: 9.8
  • Comparison with Nat’l Rate (7.80%): 2.0

Domestic Migration

  • Domestic Net Migration ’10-’11: -65,705
  • Rank: 49

State Government

  • Debt per Capita Fiscal Year ’10 ($): 4,008
  • State & Local Gov’t Employees per 10k Residents: 504.6

State-Local Tax Burden

  • Rate (%): 7.8
  • Compared to Nat’l Avg. (9.9%): -2.09
Key Companies
  • Apple Inc.
  • Chevron Corporation
  • Visa
  • Google
  • Oracle Corp.
  • McKesson
Development Trend Indicator: Negative
Major income-tax hike in November hastens self-imposed economic decline.
CEO Comments
“CA Regulates and taxes companies unreasonably.”

“California is getting worse, if that is even possible.”

“California’s legal system is broken. Employment law and contract law are highly problematic and along with regulations and taxes, discourage any further investment in this state.”

“California is completely confiscatory, ever dreamng up new ways to stick it to sub-Apple-sized companies. So far, Washington is smart enough to recognize where its jobs come from.”

“Am not aware of any businesses other than entertainment that will be expanding or moving into CA. It is a black hole.”

“Only thing [California has] going for them is the immigrant influx and the established industries already there.”

“California has the best labor pool and the worst government. Taxes are punitive, labor laws are punitive and regulations are restrictive. California is a Union Owned State.”

“California is accelerating down the wrong track. At some point even the climate will be outweighed by the massive disincentives to business and the tax penalties on the modestly successful. It’s well on its way to becoming an environment where the super elites (Hollywood, Silicon Valley and the political class) are separated from the ‘service class’ by a personal income chasm as the union continue to plunder the state’s treasury.”

“I’m considering relocating my business now based in California.”

“California is not small business friendly, or friendly for any business size when it gets down to it. Taxes are beyond belief and going higher. Cost of living overall is out of control just like our elect leaders in Sacramento. Too many entitlements and not enough people contributing.”

“Workplace rules are key for us and California is a disaster. We have considered a higher price structure in CA for our products to cover the added expense of doing business in the state.”

Bureau of Economic Analysis
Bureau of Labor Statistics
The Tax Foundation

Previous State: #49 New York


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